DNB Bank ASA

Earnings Release • Apr 30, 2020

Well equipped for a challenging time

Well equipped for a challenging time

DNB's result for the first quarter of 2020 was NOK 4 000 million, a reduction of

NOK 3 582 million from the first quarter of 2019. The bank has built up record

-high capital that can act as a buffer in an uncertain time for the Norwegian

business community.

The coronavirus and the drop in the oil price have given the Norwegian economy

twice as much to contend with. Private individuals, the business community and

banks are all affected by the infection control measures in Norway and

internationally.

"The most important thing for us this quarter has been to help customers who are

affected by the situation we're currently in," says CEO Kjerstin Braathen.

DNB is well equipped to handle challenging times, both in a short and long-term

perspective. With a higher level of equity than ever, the bank has the capacity

to help customers in the time ahead.

"Ever since the financial crisis, we have built up capital with a view to

withstanding hard times. We are reaping the benefits of this now. In addition,

we have worked diligently to secure the bank's funding. Before Christmas, we

borrowed almost NOK 60 billion in the bond market, which will now be used for

loans, to the benefit of individuals and companies alike. So let there be no

doubt -  the bank is still open," says Kjerstin Braathen.

Furthermore, DNB has never had a higher credit rating, with the AA rating and

the highest short-term rating from the two largest credit rating agencies.

Putting aside more to cover losses

However, the outlook for the Norwegian economy is leading to increased

impairment losses for the DNB Group. Impairment losses amounted to NOK 5 771

million in the first quarter, compared with NOK 316 million in the first quarter

last year.

The oil-related industries are the most vulnerable, especially offshore

companies that provide services to oil companies both in Norway and

internationally. Around 45 per cent of the impairment losses in the quarter are

related to the oil and offshore industry.

"When the future prospects for the economy become weaker, we have a duty to set

aside money for future losses straight away. The accounting rules have recently

been made more stringent on this point. That's why impairment losses are

increasing despite the fact that we haven't seen a wave of bankruptcies," says

Kjerstin Braathen.

The general outlook for the Norwegian economy is also an important reason for

the bank to put aside more money for covering future losses.

"One of our tasks in society is to invest and take risks together with companies

and private individuals. When the level of uncertainty rises, both we and our

customers stand the risk of losing money. But we also have another important

task, and that is to help as many people as possible through the crisis. Then

hopefully we can also reverse some of these impairment losses in the future,"

says Kjerstin Braathen.

Increasing income

The DNB Group's income is showing healthy development. Net interest income was

NOK 10 395 million in the first quarter, up NOK 1 106 million from the same

quarter last year. Other income is also higher than last year, up NOK 1 376

million in the first quarter, partly influenced by positive currency effects at

a time when the NOK has weakened dramatically and we are seeing negative effects

related to changes in value due to the turbulent market situation.

In certain areas, such as initial public offerings (IPOs) and other capital

advisory services, income has been reduced as a result of lower activity than in

the previous quarter.

"We entered the crisis with a strong starting point. We have built up capital

and we have a robust portfolio. In addition, we have first-class digital

solutions such as the mobile bank, the corporate app Puls and the savings app

Spare. This means that we are in a good position to help our existing customers,

and also to recruit new ones, even though we can't actually meet physically,"

says Kjerstin Braathen.

As previously announced, the Board of Directors of DNB has postponed the

decision on paying out a dividend to shareholders for 2019. The decision will be

made at an extraordinary general meeting later this year.

Financial key figures for the first quarter of 2020 (compared with figures for

the corresponding quarter in 2019):

· Pre-tax operating profit before impairment amounted to NOK 10.1 billion

(7.6)

· Profit for the quarter was NOK 4.0  billion (7.6)

· Earnings per share were NOK 2.28 (4.61)

· Return on equity was 6.5 per cent (14.1)

· Cost/income ratio was 35.3 per cent (42.0)

· Common equity Tier 1 capital ratio was 17.7 per cent (17.1)

Details concerning DNB's results can be found on ir.dnb.no.

For further information:

Rune Helland, Head of Investor Relations, tel.: (+44) 23 26 84 00 / (+47) 97 71

32 50

Thomas Midteide, Group Executive Vice President for Communications, tel.: (+47)

96 23 20 17

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Securities Trading Act.